"A New Fleet" For Air India: Tata Sons Plans A Huge Order Of Planes

Modernizing Air India's fleet is crucial for the Tata Group, which last month won control of the struggling carrier after bidding an enterprise value of 180 billion rupees ($2.4 billion).

Boeing Co. and Airbus SE are in talks with the new owners of Air India Ltd. about an order for a raft of new planes, according to people familiar with the matter, part of a plan to rejuvenate the ailing carrier and its aging fleet.

Tata Sons Pvt., which acquired the debt-laden airline from the government last month, has begun talks with the planemakers and lessors for jets including Airbus A350-900s and Boeing 787-9 Dreamliners, the people said, asking not to be identified because the discussions are private.

The talks are at a preliminary stage, with Tata Sons assessing the right fleet mix and no decisions taken yet on aircraft type or order size, according to the people. The carrier is in discussions for new Airbus or Boeing narrow-body jets that form the mainstay of Air India's domestic and short-haul operations, as well as wide-body aircraft capable of flying as far as the U.S., the people said.

A spokesperson for Tata didn't immediately respond to a request for comment. A representative for Boeing in India said the company always seeks opportunities and holds talks with current and potential customers about supporting their fleet. An Airbus representative also said the planemaker is in constant discussions with current and prospective customers concerning fleet requirements.